A plan to limit the tax-deductibility of interest on municipals would trigger mandatory...

|By:, SA News Editor

A plan to limit the tax-deductibility of interest on municipals would trigger mandatory redemption provisions on some of the paper, says Citigroup, which estimates up to $150B of the paper may need to be called. If just one investor is forced to pay taxes on what were tax-exempt bonds, says Vikram Rai, mandatory redemptions can be triggered for all owners of the same issue.